Iberdrola, AXA IM Alts Partner for 1-GW Normandy Wind Auction

Spanish multinational electric utility company Iberdrola is trying to make the most out of the French renewable expansion. In a fresh bid, Iberdrola has signed a Memorandum of Understanding (MoU) with global investment specialist AXA IM Alts for possible collaboration for upcoming projects in the offshore wind energy sector in France.

Iberdrola is a participant in the A04 tender which is also called ‘La Manche.’ The French tender involves the award of about 1 GW of offshore wind energy contracts in Normandy.

Under the new agreement between the two renewable energy players, the two companies are expected to negotiate terms.

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AXA IM Alts will join the wind project of Iberdrola as a minority shareholder on behalf of clients in case Iberdrola is awarded in the A04 auction. Also, the scheme of things remains subject to obtaining regulatory approvals and related customary conditions.

As far as La Manche is concerned, the players can submit their bids on November 10. The award is expected to be made in the first quarter of next year. France has earmarked an area which is about 32km off the Normandy coast for the wind farm development.

There are other companies and consortiums also apart from Iberdrola that have been selected for the A04 tender. These include Eoliennes en Mer Manche Normandie, a project company of EDF Renouvelable and Maple Power, a joint venture of Enbridge and CPPIB; Ocean Winds; Shell; a consortium formed by the Total and RWE groups; and a consortium of Vattenfall, wpd, and the Banque des Territoires.

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AXA IM Alts is part of AXA Investment Managers and the company recently acquired 50 per cent stake in Ørsted’s 1.3 GW Hornsea Two Project along with Crédit Agricole Assurances. The Hornsea Two Project is presently the largest offshore wind farm in operation in the world.

Iberdrola, on the other hand, has emerged as a global leader in renewable energy, and has an objective of exceeding 60,000 MW of renewable capacity by the middle of this decade.